Pernod Ricard sees overall decline in sales over Q1

By Oliver Catchpole

Published: 16 October, 2025

Pernod Ricard, the wine and spirits giant, has experienced declines across most of its major markets in the first quarter. Overall, Q1 organic net sales were down -7.6%, while reported sales fell -14.3%.

Total sales for Q1 FY26 were €2,384m, with a disadvantageous foreign exchange impact of -€143m (mainly from USD, INR and TRY).

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Pernod Ricard said that its sell-out performance in the USA continued to improve versus the market, although sales there fell by -16%.

While this was partially mitigated by strong growth in Canada, particularly from RTD brands (as well as Jameson and Absolut), the Americas as a region overall declined by -12%.

In Asia-RoW, India enjoyed growth of +3%, with Ricard noting positive underlying sales dynamics, and strong sales growth for international brands (led by Jameson), although there was a slight decline in Maharashtra state due to excise policy changes.

By contrast, sales in China contracted by a substantial -27%, mostly due to weak consumer demand, driving an overall decline across Asia-RoW of -7%. Pernod Ricard added that it remains cautious in a challenging demand environment ahead of the upcoming Chinese New Year period.

Europe also saw a contraction in the first quarter, with sales falling -4%, and the UK in decline gradually. The rate of decline in Germany and Spain is easing, however.

Additionally, the Global Travel Retail category fell by -15%.

Looking at sales by brands, the only area that saw significant growth was RTDs, which grew by +10%. However, Speciality Brands, Strategic Local Brands and Strategic International Brands all saw varying degrees of decline.

Pernod Ricard expects improving trends in organic net sales, skewed towards the second half of the financial year.

It said it will defend its organic operating margin, partially through the implementation of cost controls and its FY26 to FY29 €1bn operational efficiencies programme.

In the medium term, it is aiming for +3% to +6% organic net sales growth per year on average, with an expansion of its organic operating margin.

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